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South Africa's Pepkor flags 20% drop in annual earnings as pandemic weighs

South Africa's Pepkor Holdings expects its annual earnings to fall by at least 20% due to the impact of COVID-19 on sales and provisioning, the clothing and furniture retailer said on Thursday.

By 0923 GMT, the shares were down 2.8%.

Pepkor, majority owned by Steinhoff SNHJ.J also said it successfully concluded talks to refinance 5 billion rand ($300 million) of debt due for repayment in May 2021 and the debt is now repayable in September 2023.

In addition, a 1 billion rand bridge revolving credit facility originally due to expire in November 2021 has been extended to September 2023.

($1 = 16.6596 rand)

(Reporting by Tanisha Heiberg and Nqobile Dludla; editing by Jason Neely and Emelia Sithole-Matarise)

((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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